Bitcoin News Today: Banks Under Fire: Crypto Users Forced to Switch or Cap Funds

Australian cryptocurrency users continue to encounter significant banking obstacles, despite regulatory progress and growing adoption of digital assets in recent years. A recent Binance Australia survey of 1,900 users revealed that 58% wanted unrestricted access to deposit funds into exchanges, while 22% had switched banks to facilitate easier crypto purchases. Industry leaders, including Binance's Matt Poblocki and OKX's Kate Cooper, have highlighted that inconsistent banking access not only inconveniences users but also risks diverting activity to less regulated offshore venues, which poses challenges for both consumers and the broader financial system [1].

Banks in Australia have implemented various restrictions, with Commonwealth Bank, one of the largest financial institutions, limiting monthly transfers to crypto exchanges to A$10,000. Cooper noted that this has led to frequent customer inquiries seeking alternatives for seamless crypto transactions. While adoption rates in Australia exceed 30%, the friction caused by banking barriers has led to widespread customer frustration [1].

The regulatory landscape for crypto in Australia has evolved since 2018, when exchanges were brought under Anti-Money Laundering laws and required to register with AUSTRAC. More recently, the first Bitcoin and Ether exchange-traded funds were launched, and Coinbase and OKX introduced services for self-managed superannuation funds (SMSFs), opening new avenues for crypto to enter retirement savings systems [1]. Despite these advancements, industry executives emphasize that clearer legislative frameworks are necessary to resolve ongoing issues like debanking and inconsistent access to financial services.

Debanking, which involves the closure of accounts or denial of services to individuals and businesses in the crypto sector, remains a critical challenge. Jonathon Miller of Kraken highlighted that such practices create concentration risks, as local exchanges and startups often have limited banking partners willing to work with them. Poblocki reiterated that regulatory clarity, supported by collaboration between government, banks, and industry stakeholders, is essential to resolve these issues [1].

Investor sentiment in the Australian crypto market remains strong, with Binance’s survey showing that over 27% of respondents expect Bitcoin to exceed USD $150,000 in the next six months, and nearly 50% anticipate stabilizing between USD $100,000 and USD $150,000. Poblocki attributed this optimism to factors such as institutional inflows and improved regulatory clarity. Additionally, the survey revealed that over 86% of users hold altcoins, with more than half planning to increase their holdings [2].

Despite growing investor confidence, the uptake of crypto in SMSFs has been relatively cautious. As of June 2025, SMSFs held AU$3.02 billion in cryptocurrencies, representing less than 0.3% of their total assets and a 4% decline compared to the previous year [5]. While global exchanges like Coinbase and OKX are actively targeting Australia’s superannuation system with SMSF-focused products, SMSFs remain “cautious by design,” as noted by industry expert Jeremy Kinstlinger. He observed that SMSFs followed the 2024 crypto rally but have since stepped back, missing subsequent growth [4].

Source: [1] Australians still feel bank 'friction' despite years of crypto ... (https://cointelegraph.com/news/crypto-exchange-users-australia-still-face-banking-barriers) [2] Australian investors bullish as Bitcoin set to break USD ... (https://cfotech.com.au/story/australian-investors-bullish-as-bitcoin-set-to-break-usd-150-000) [3] Investors want regulatory clarity on digital assets: Binance (https://www.financialstandard.com.au/news/investors-want-regulatory-clarity-on-digital-assets-binance-179809779) [4] Australian Retirement Funds Have 'Missed the Rally' in Crypto ... (https://finance.yahoo.com/news/australian-retirement-funds-missed-rally-070731177.html) [5] Australian SMSF Crypto Holdings Slip 4% Despite Bitcoin ... (https://cryptonews.com.au/news/australian-smsf-crypto-holdings-slip-4-despite-bitcoin-surge-130707/) [6] Coinbase, OKX Unlock Australia's $2.8 Trillion Pension Pot for ... (https://finance.yahoo.com/news/coinbase-okx-unlock-australia-2-125938821.html)